Investment is the way to save money for future use. The investment makes people responsible and secure as they have to use them in future at any case of emergency. Several methods are there which you can follow to invest your amount for the future. The banking system, the bond system, the share market system are some common terms that are used to save your amount. These systems also allow you some profit earning opportunity. Let’s discuss some investment methods to help you in selecting the best one for you:

Direct Equity of Investment Methods:

Direct Equity has no guarantee of return but it’s a volatile asset class that may not be a piece of cake for everyone to handle it. It’s not easy to enter in this market timely and along with this picking, the right stock at the right time is also difficult to consider in this way of investment. Higher than the returns from inflation-adjusted, the only charm of this investment is that for over long period the investor can be able to have higher delivery when this method is compared to other methods this only thing makes it attractive for investors. Company stocks are invested in this way and they are kept safe and secure in this way.

This method is smother and considered a higher portion of capital in it to invest. For a specific price, these bonds are ordered and these have a specific amount of investment in terms of allowing them to carry out the things more efficiently and more profit can be gathered from this way. There is a risk factor in this way as it is a time taking process to get money back and in terms of getting profit over your money, you have to come in between the offered percentage by the market returns for sure (Town, 2020).

Equity Mutual Funds of Investment Methods:

            Inequity stocks an investor invests predominantly in Equity mutual funds. On a fund manager’s ability to generate returns this equity mutual fund system depends on and these underlying index tracks including exchange-traded funds are managed in this system passively. The sectors in which they invest or the market capitalization in which these equity schemes working. There are two kinds of investment in this method one is international and other is domestic and these both are controlled and noticed in this scheme. The market return percentage is calculated in this from the regulator authorities which is shared by the investors through their portals. These funds are the best to have a large amount of investment and hence you can be able to save a big amount of cash to them. These funds can be profitable in terms of allowing them to earn a lot of profit amount for them (Oyshia, 2020).

Bank Fixed Deposits of Investment Methods:

Banks are the systems that are considered to be the best in terms of investing in people more safely. Several things are taken care in this way as people can save their money, gold or bonds as well in the banking system as these are the forms of their investment in the banking system. Several things are also considered with this in terms of investing the amount and there has been a handsome amount of profit has been offered by the banking system on your investment. These fixed deposits were only being able to use when they have been deposited from the banks. These are fixed as they can be invested at one time and only be deposited after the time it completes according to the agreement you made with your bank. Only after this, you can be able to take the profit amount from banks otherwise if you deposit it in the mid of the agreement then no profit amount will be given to you as this is the way to deal in this type of investment (Corporatefinanceinstitute.com, 2019).

Shares of Investment Methods:

            Shares are the piece of papers that have several amounts of investment in them allowing the people to invest it in the stock market. This is a good form of investment in terms of allowing the things to be considered carefully and hence making the aspects clear that this kind of investment is quite safer and you can get several amounts of profit on this as well. This system is considered quite safe as you do not have to carry money with you. You just have to take care of the market share price that fluctuates on regular basis and must wait for your luck to work on the day when there is a larger amount of profit in the market shares. Shares are transferred within the companies and they are managed and controlled at the backend by the different organizations as they are dealing in the market. The stock exchange is a complete market that deals in the exchange of these bonds. They use to give a percentage daily and you can consider that percentage for dealing your share in that market according to that rate. (Dhawan, 2020).

Cash of Investment Methods:

The paper money that you have to carry at different places to keep it safe and secure for your future use. It includes term deposits, everyday bank account and high-interest savings as well. In terms of reducing investment portfolio, reducing risk and in protecting wealth this amount takes place an important role and can deliver regular income amount but it has no chance of income growth.  This kind of investment is quick to form but it is less productive as it does not give any profit in return unless it is going to be invested in any other platform or way to get doubled as profit. A lot of people believe that cash is the best way of investment for them as they can easily get this from their banks if they need it and hence they can use it immediately at the time of emergency as compared to other investing forms (Commsec.com.au, 2020).  

References of Investment Methods

Commsec.com.au. (2020). What are the different types of investments? Retrieved from https://www.commsec.com.au/education/learn/investing-basics/what-are-the-different-types-of-investments.html

Corporatefinanceinstitute.com. (2019). What is an Investment? Retrieved from https://corporatefinanceinstitute.com/resources/knowledge/finance/investment-methods/

Dhawan, S. (2020, January 06). Top 10 investment options. Retrieved from https://economictimes.indiatimes.com/wealth/invest/top-10-investment-options/articleshow/64066079.cms

Yoshida, A. (2020, February 07). Types of Investments. Retrieved from https://www.nerdwallet.com/blog/investing/types-of-investments/

Town, P. (2020). How to Invest Money: A Simple Guide to Grow Your Wealth in 2020. Retrieved from https://www.ruleoneinvesting.com/blog/how-to-invest/how-to-invest-money/